A MULTIMILLION state-of-the-art diamond processing factory that is set to improve the City's economy has opened in West Bank, in the East London Industrial Development Zone (IDZ).

The diamond polishing factory was brought to East London by the Matla Innovation Group, with a vision in line with the government's aim to create jobs and facilitate skills transfer, according to the IDZ.

"With a facility like the diamond polishing plant in the Eastern Cape, the East London IDZ and Matla Group have ensured that this goal will be realised," it said.

The R102-million plant was officially opened on 27 July, a partnership between black owned Matla Innovation Group and its Chinese technical partners. Another benefit of the facility will be the strengthening of government relations between South Africa and China.

Work has started at the plant already, with the employment of young people working towards achieving their degrees and diplomas.

"One of the most important aspects of having a world-class diamond polishing facility in the Eastern Cape is the graduating of young people from trainees to professionals in the industry," said Minister of Mineral Resources Susan Shabangu, speaking at the opening.

Her ministry would like to see the youth working at the plant becoming professionals who fully understand the diamond industry and who develop the skills necessary for them to own their own companies one day, she added.

The aim was for the plant to become an innovation hub in Eastern Cape, said the executive chairman of Matla Innovation Group, Zwelakhe Sisulu. "Looking to the future, the group will launch a solar heater manufacturer and technology company that will manufacture laptops and mobile phones, among other things."

All these innovation-focused companies would be based in East London.

The Matla Diamond Polishing Plant has been benchmarked with the world's best plants in India and China.

The MEC for economic development and environmental affairs, Mcebisi Jonas, said: "The plant is a first of its kind for the Eastern Cape and the partnership between Matla Innovation Group and its Chinese technical partners will go a long way in increasing the country's competitiveness in the diamond polishing industry."

The plant is expected to create more than 120 jobs over the next two years and over 500 in the next five years.

Matla's group chief executive, Chia-Chao Wu, said the company wanted to train more than 150 graduates and matriculants as cutters and polishers. "Eastern Cape has a lot of qualified young people who are willing to learn but, more importantly, who need the specialised skills and the employment."